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Detailed computation of Cost Estimate for Direct Labor, Indirect Labor, Overhead etc.

In KP26 we maintained the following activity price,

Costing Lot size: 10,000

For the routing display (ca03) we maintained the ff:

Base Quantity 10,000 pc

Activity type:

Labor 1 Hour

FSD 10,000 pc

FSI 10,000 pc

Depreciation 10,000 pc

Indirect Labor 10,000 pc

Machine (OOH) 10,000 pc

Scrap 0

The resulting cost estimate for the above material is.

Question: How to compute for the cost estimate for each activity type?

Main Material?Parts?Purchase of Products?Direct Labor, Labor Indirect, Fact supplies direct/indirect,depreciation, other overhead cost.


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2 Answers

  • Best Answer
    Posted on Oct 20, 2015 at 06:16 AM


    In Routing you can define max 6 activity type for cost calculation...

    Activity cost is calculated based on activity rate defined in kp26 or if you have plan at kp06 and kp26 then run kspi

    In WC you are defining activity type and costing formula for cost calculation which is linked in routing


    1. Activity Direct Lab Rate = 0.25 per HR

    2. Base qty in routing 10000 pc

    3. Routing operation where you have defined 10000 hrs for base qty of 10000 pc

    then Direct lab cost = 10000/10000*0.25 = 0.25

    So now check your settings


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  • Posted on Oct 20, 2015 at 05:59 AM

    Hi Athena V.

    The resulting cost estimate as shown by you is came from your cost component structure.

    If you want see the cost as different with different activity type or main part you must maintain different cost component with attributes in cost component structure (OKTZ) and assign the cost element of your activity type to cost component with attributes.



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